Authority: National Company Law Appellate Tribunal (NCLAT) Principal Bench, New Delhi

Order Date: 02 July 2026

Case Overview

This order addresses two connected appeals (Comp. App. (AT) (Ins) No. 1084 & 1085 of 2026) filed by Mrs. Monica Ajeet Mulay (Appellant) against Abhyudaya Co-Operative Bank Ltd. and Another (Respondents). The appeals arise from proceedings under the Insolvency and Bankruptcy Code, 2016 (IBC).

Appeal No. 1085 of 2026 was filed challenging an order dated 11.05.2026 from the Adjudicating Authority (NCLT), which had reserved its orders in the corporate insolvency process CP(IB) 812/MB/2024. However, the final order in CP(IB) 812 of 2024 was subsequently passed on 10.06.2026, making this appeal infructuous. The Tribunal dismissed it on these grounds.

The primary appeal, No. 1084 of 2026, challenges the Adjudicating Authority's order admitting a Section 95 application (initiation of an insolvency resolution process against a personal guarantor). The Appellant's counsel presented a critical development: the Hon'ble Bombay High Court had set aside the underlying arbitral award (dated 12.02.2024) in an order dated 09.06.2026, just one day prior to the impugned NCLT order. It was submitted that the Adjudicating Authority had previously adjourned proceedings acknowledging the pending High Court matter. A praecipe (an urgent application) filed to bring this new development to the NCLT's attention before its order was rejected.

Final Outcome

The NCLAT admitted Appeal No. 1084 of 2026 for hearing. It issued formal notice to the respondents. The Resolution Professional's counsel accepted notice. The Tribunal directed the Respondent No. 1 (Abhyudaya Co-Operative Bank Ltd.) to file a reply within three weeks, with a rejoinder from the Appellant due within two weeks after that. The appeal is scheduled for its next hearing on 20 August 2026.

As an interim measure, the Tribunal permitted the Corporate Insolvency Resolution Process (CIRP) to continue but explicitly ordered that "no repayment plan shall be finalized" until the next date of hearing. The Appellant was also granted permission to file an additional affidavit to raise additional grounds in the appeal.

Topics: Insolvency Proceedings, Legal Appeal, Banking

This content is of limited financial relevance as it pertains to an ongoing legal procedural matter involving an individual and a co-operative bank, with no immediate material impact on public markets or large corporates.